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With buyers maturing in sophistication, the value proposition of CCO has moved beyond labour arbitrage; service providers are increasingly focused on process improvement and business outcomes to deliver cost savings and revenue growth.

The global Contact Centre Outsourcing (CCO) market grew at 7 percent in 2013, reaching US$70-75 billion. Along with a higher number of new deals, 2013 also witnessed a high number of terminations, highlighting buyers’ intentions to consolidate their portfolio and drive more value from current engagements.

These findings and more are discussed in a new Everest Group report, Contact Center Outsourcing – Annual Report 2014: Changing Times, Evolving Value Proposition.

The following trends exemplify the evolution of CCO services:

  • The last three years have seen significant investments (approximately 70 percent of all technology-related investments) in enabler technologies such as analytics, social media and workflow management.
  • The inclusion of value-added services has almost doubled in 2013 (81 percent) from 2008 (48 percent).
  • As buyers focus on improving customer experience, service providers are investing in onshore capabilities. In fact, almost 60 percent of contracts signed in 2013 have significant onshore delivery components.

“As the CCO market matures, enterprise buyers are seeking ever more value from their outsourcing contracts,” said Katrina Menzigian, vice president of research relations at Everest Group.

 “We see this borne out on the buy side by a rationalization and consolidation of service provider relationships. But, more importantly, on the service provider side this maturation drives a significant evolution toward more sophisticated, value-added services. Interestingly, we witnessed a doubling of annual contract value in 2013, which can be attributed in large part to the increased inclusion of value-added services in new CCO deals.”

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